Manitoba Oil & Gas Review 2021

SERVING MANITOBA’S OIL & GAS INDUSTRY

MANITOBA 2021 Oil & Gas Review Line 3 work on tap this summer in Manitoba Looking back at Manitoba’s oil patch

PUBLICATION MAIL AGREEMENT #40934510

Oil & gas recovery in 2021 will help the entire country Dennis County Development Partnership open for business!

Birdtail (135) Manson (125) Kirkella (120)

Daly Sinclair (125)

Distances from Brandon, MB

Oilfield Location (km)

Virden (80)

Souris Hartney (70) Regent (80)

Tilston (145)

Pierson (160)

Waskada (140)

Whitewater (95) Mountainside (100) Lulu Lake (105)

well positioned

IN THIS ISSUE...

6 Message from Premier Brian Pallister 8 Message from Blaine Pedersen, Minister of Agriculture and Resource Development

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, MB R3L 0G5 www.delcommunications.com President & CEO: DAVID LANGSTAFF Editor: LYNDON McLEAN lyndon@delcommunications.com

9 Message from Murray Wright, Mayor of Virden

10 Manitoba’s oil by the numbers

DAYNA OULION

11 Well Location Map No. 7 12 Looking Back: Highlights from Manitoba’s oil patch 16 Line 3 work on tap this summer in Manitoba

Advertising Sales Manager:

Advertising Sales: COLIN JAMES MIC PATERSON DAN ROBERTS GARY SEAMANS Production services provided by: S.G. Bennett Marketing Services

18 Greening of the pipeline grid

www.sgbennett.com

19 Message from Mark Scholz, President and CEO of the

Creative Director / Design: KATHLEEN CABLE

Canadian Association of Oilwell Drilling Contractors

20 Regional economic partnership open for business!

22 Oil & gas recovery in 2021 will help the entire country 24 Mental Health: The parallel pandemic 25 How to develop EOR technologies more efficiently 26 A least-cost curve for actions to reduce CO2 emissions 27 Canada says government fund helping to cut methane emissions

27 U.S. continues to be major supplier of oil to Canada while imports dropped in 2020

28 Virden Meter filled need for instrumentation contractor 30 Index to advertisers

©Copyright 2021.

Manitoba Oil & Gas Review. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher.

While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher­in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher­, its directors­, officers or employees.

Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road

COVER PHOTO COURTESY OF ENBRIDGE INC. Line 3 Replacement Pipeline (L3RP) construction in the fall of 2017. Construction of L3RP was completed in Canada, and the new pipeline began operating in December 2019. The final piece of this North American pipeline is being constructed in Minnesota this year.

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Manitoba Oil & Gas Review 2021

Winnipeg, Manitoba, Canada R3L 0G5 Email: david@delcommunications.com PRINTED IN CANADA 05 | 2021

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Manitoba Oil & Gas Review 2021

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A MESSAGE FROM THE

Honourable Blaine Pedersen Minister of Agriculture and Resource Development As the Minister of Agriculture and Resource Development, I recognize that it is important to manage and develop all of

our natural resources in a responsible and sustainable manner, while creating an environment for new investment. This holds

Return to Work for better business and better recovery

The WCB is here to help you get started.

• Help workers heal faster with modified or alternate duties and a timely and safe return to health and work • Retain valuable employees

Download our Best Practice Guide at wcb.mb.ca/return-to-work

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Manitoba Oil & Gas Review 2021

• Reduce WCB costs

true for the oil & gas sector.

The recent implementation of the Petrinex system in Manitoba is allowing our province to better align with other Western Canadian jurisdictions to increase standardization of business and operational processes. In addition, this new system will enable us to leverage current industrystandard technology to modernize our oil & gas facilities, our production and emissions data collection, as well as our data audit processes.

The oil & gas industry is an important driver of Manitoba’s economy as a whole and specifically for those communities that host oil & gas operations. The recent challenges due to the COVID-19 global pandemic have affected all sectors of the Manitoba economy, including the oil & gas sector. Continued innovation and strong market recovery are instilling confidence that the oil & gas sector is navigating through this difficult time and will become stronger than ever.

Together, we will continue to develop and expand Manitoba’s mineral and petroleum potential in 2021. v

PLEASE RECYCLE

Greetings from the Oil Capital of Manitoba!

A MESSAGE FROM

murray wright Mayor of Virden

Our progressive agriculture community is located at the intersection of two major highways and within the heart of Manitoba’s petroleum producing region. We have 3,322 people who call Virden home.

Our region is continuing to grow and develop, and several companies are making long-term investments in our area to grow their business.

As with the rest of the world, COVID-19 has had a negative economic impact in our area. Fortunately, the volatility of the oil & gas industry is not unforeseen, and while our business have had to make adjustments, with above-average investment inquiries and new business starting over the last year, we are confident in the opportunities for the future.

We are the Oil Capital, but we have so much more than oil. Virden is well known for its cultural activities and recreational facilities. Tundra Oil & Gas Place, a multipurpose facility, is home to large banquet functions, our famous indoor rodeo, concerts, and regional/provincial sporting events. The Virden Oil Capitals, a Manitoba Junior Hockey League team, have a large fan base and are working hard to bring home a championship! The CP Station Art Gallery is home to Arts Mosaic, which hosts an art gallery and offers many shows in the 500-seat Aud Theater, Western Canada’s oldest opera house.

Our airport is a surprisingly busy facility, offering a paved runway and tarmac, as well as Jet Fuel and Avgas. Industrial development continues to pop up in our industrial park next to the airport. The agriculture and oil sectors contribute to the need for our many retail and service businesses.

We welcome the opportunity to discuss

your commercial or industrial needs for our community, whether it is in Virden or in the surrounding communities.

On behalf of the council, staff, and peo-

ple of Virden and area, we hope you find exactly what you are looking for in Virden, where we have a proud heritage and strong future! v

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MANITOBA GOVERNMENT STATISTICS

Oil by the numbers Geophysical Licenses Issued.......................................... 0

Wells Producing (December)................................... 3,656

Geophysical Expenditures ($)................................483,012

Abandoned Producers................................................. 101

Drilling Licenses Issued................................................ 90

Other Wells Abandoned................................................. 17

New Wells Drilled.......................................................... 83

Certificates of Abandonment Issued............................ 73

New Wells on Production............................................ 100

Crude Oil Production (m3)...............................2,201,087.5

New Wells Abandoned.................................................... 2

Reservation Sale Bonuses ($)......................................... 0

Horizontal Wells Drilled................................................ 76

Lease Sale Bonuses ($)....................................293,303.45

Metres Drilled........................................................166,777

Reservation & Lease Rentals & Fees ($)...............17,816

2020 oil production............................ 13.9 million barrels

Crown Reservation Area (ha).......................................... 0

Average oil production...... 38,082 bbl/day / 6,054 m /day

Crown Lease Area (ha).............................................. 1776

Wells Capable of Production (Dec)........................... 5397

Total Crown Area Under Disposition (ha)..........59,829.49

3

OIL PRICES 2020 Month

Manitoba LSB

Selling Price Manitoba Production

2020 $/M3 $/BBL

$/M3 $/BBL

January

$427.19

$67.88

$396.64

$63.03

February

$362.74

$57.64

$336.12

$53.41

March

$194.27

$30.87

$175.50

$27.89

April

$115.98

$18.43

$105.03

$16.69

May

$111.64

$17.74

$102.74

$16.33

June

$328.70

$52.23

$308.51

$49.03

July

$316.49

$50.29

$305.97

$48.62

August

$321.08

$51.02

$310.05

$49.27

September

$302.20

$48.02

$289.14

$45.95

October

$296.92

$47.18

$290.02

$46.09

November

$303.27

$48.19

$298.47

$47.43

December

$346.19

$55.01

$334.34

$53.13

Avg. 2020

$285.56

$45.38

$271.04

$43.07

January 2021

$373.82

$59.40

$358.98

$57.05

February 2021

$426.81

$67.82

$411.54

$65.40

March 2021

$463.75

$73.69

$449.75

$71.47

INFORMATION COURTESY OF MANITOBA AGRICULTURE AND RESOURCE DEVELOPMENT

For the eighth year in a row, Winnipeg-based Tundra Oil & Gas was the top driller, with 49 wells drilled. Corex Resources drilled 26 wells, Canadian Natural Resources drilled seven, and Vermillion Energy CA drilled one.

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Manitoba Oil & Gas Review 2021

Looking back

Highlights from Manitoba’s Oil Patch from its beginnings to the ’80s

1873 - The Geological Survey of Canada drilled wells to obtain geological information.

1877 - The Manitoba Oil Company was granted a charter to explore for oil in the province.

the Mississippian Lodgepole Formation. Before year end, development wells drilled around this discovery well confirmed the existence of Manitoba’s first major oil field, the Daly Field.

shallow wells which encountered pockets of natural gas. None of the wells were commercial producers.

1952 - Of 73 wells drilled, approximately half were development wells located in the Daly Field. Over 400,000 hectares were granted as exploration reservations. Major freehold leasing programs commenced. The Tilston, Waskada, and Lulu Lake Fields were discovered.

1927 - A 209-metre well in the Grandview District was reported

1953 - After drilling 14 unsuccessful wells for the Anglo Canadian

1912 - Local residents in the Waskada-Melita district drilled nine

to have oil shows. It was later revealed that the promoters had brought oil from town in barrels and poured it down the well.

North Star Oil built the first crude oil refinery in Manitoba.

1930 - Wells were drilled into deeper formations in the Paleozoic.

1934 - A well drilled by Canadian Industries Limited, near the Town of Neepawa, encountered salt brine at 455 metres. The deposit was commercially developed and produced 23,000 metric tons of salt per year until 1970, when production was discontinued.

1947 - The government passed the first regulations covering oil and natural gas exploration and development in the province.

The Brandon Exploration Company, a subsidiary of the California Standard Company, was issued Oil and Natural Gas Reservations Numbers 1-9 by the provincial government. The company carried out the first major detailed geophysical survey, covering nearly all the southwestern portion of Manitoba.

1949 - The

Souris Valley Oil Company drilled two wells near Lyleton. The Gordon White No. 1 well, drilled to 1,573 metres, established the presence of Mississippian limestones. The Robert Moore No. 1 set a new provincial depth record of 1,838 metres.

1950 - Imperial Oil, the California Standard Company and Shell Oil of Canada had eight geophysical crews working in Manitoba.

The eight wells drilled that year were all abandoned as dry holes, but perseverance started to pay off as oil shows began to appear.

1951 - The California Standard Oil Company discovered the first commercia! oil-producing well in North America’s prolific Williston Basin. The well, California Standard Daly, was located 15 kilometres west of Virden. It began production February 1, 1951. Over an eight-month period, it produced 135 cubic metres of oil from

12

Manitoba Oil & Gas Review 2021

Oil Company, Hart and George McIvor decided to drill on their grandfather’s old farmstead. Their efforts produced the province’s first flowing oil well and led to the discovery of the Virden Field.

The well, located about two kilometres northwest of the Town of Virden, initially produced 21 cubic metres of oil per day. The Whitewater Field was discovered and the first known waterflood project in Canada was initiated in the Daly Field.

1954 - Of 310 wells drilled, 290 were completed as oil producers while 144 wells were classified as wildcat wells. The Pierson Field was discovered. An act was passed which enabled the provincial government to assess taxes on producing privately owned mineral rights. Manitoba’s first crude oil pipeline gathering system was constructed in the Daly Field by the Northern Development Company.

1955 - A total of 554 wells produced 658,789 cubic metres of oil.

Three hundred and fifty-nine wells were completed, setting an alltime record for wells drilled in a single year. The West Butler Field was discovered in November.

1957 - Annual oil production reached 967,701 cubic metres, the highest level recorded to that date, with the Virden and Daly Fields producing 90 per cent of this volume. The Kirkella Field was discovered.

1962 - Waterflooding was initiated in the Virden Field. As geophysical activity increased, the search for oil & gas extended to the onshore area of Hudson Bay, where Sogepet Limited received 12 exploration permits covering 200,000 hectares. The Souris-Hartney Field was discovered. Two 81,000-hectare helium exploration reservations in the Interlake area were granted to Hemisphere Helium Corporation. No commercial quantities were found.

1963 - Annual oil production bottomed out at 599,276 cubic me-

tres before beginning to increase due to the initial effects of the waterflood in the Virden Field.

1964 - Oil exploration and development continued to show a

Always looking for new opportunities in Manitoba and S.E. Saskatchewan’s oil patch.

marked increase, with drilling activity approaching twice that of the previous year (107 wells vs 56 wells). Production reached 701,909 cubic metres, an increase of 17 per cent over the 1963 level. The first oil shale reservation in Manitoba was granted to a consortium of Sun Oil Company, Aquitane Company of Canada, and the Atlantic Refining Company. Low oil concentrations and high development costs halted the program.

1965 - Oil production increased to 786,034 cubic metres, up 12 per cent from 1964. Much of the increase was attributed to the continued expansion and success of waterflood projects.

1966 - The first exploratory drilling in the Hudson Bay on-shore area took place in September, when Aquitaine drilled to a depth of 896 metres, bottoming in the Precambrian. The stratigraphic information forecast better prospects for finding oil in the deeper portion of the Hudson Bay Basin, particularly offshore. Provincial oil production continued to increase. Bralorne Petroleums headed a consortium of five companies which was granted a 243,000-hectare helium exploration reservation in the Interlake area. Test holes revealed no commercial quantities of helium.

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1967 - The original Waskada Field was further developed with a new Mississippian pool discovery by International Hydrocarbons Ltd. 1968 - Oil production reached 986,023 cubic metres, the highest annual level ever attained in Manitoba’s oil patch. Exploration and development activity increased in the Waskada and Pierson areas.

A second well was drilled, onshore near Hudson Bay, by Houston Oils Limited.

1980 - Omega Hydrocarbons Ltd. successfully recompleted a producing oil well in the Waskada Field, obtaining the first commercial production from a non-Mississippian formation in Manitoba. This was also the first recorded production in Canada from the Jurassic Lower Amaranth or Spearfish Formation. Crown oil and natural gas lease sales generated over $1.9 million.

1981 - The discovery of the Lower Amaranth formation at Waska-

the Ashville (Cretaceous) and Nisku (Devonian) Formations in the Brandon-Spruce Woods area. Aquitaine drilled the first offshore well in Hudson Bay, Aquitane et al Hudson Walrus A-71, to a depth of 1,197 metres. The well, located approximately 225 kilometres east of Churchill, was later abandoned as a dry hole.

da fueled Manitoba’s second “oil boom”, with 67 wells completed − an increase of 120 per cent from 1980. Of the 67 wells drilled, 47 were completed as potential oil producers. Provincial oil production reached an all-time low of 542,695 cubic metres, having declined at approximately four per cent per year since 1969. The federal government granted an exploration agreement to a consortium, with Canadian Occidental as operator, to carry out new exploration in Hudson Bay.

1970 - A third on-shore well was drilled just north of York Factory,

1982 - One hundred and ninety-five wells were drilled in Mani-

1969 - Thirty-eight structural test holes were drilled to evaluate

near Hudson Bay, by Merland Explorations Ltd.

1974 - Asamera, in partnership with the provincial government, began a 25 well basement test drilling program in southwestern Manitoba. Provincial Crown oil royalties totalled $1.6 million, an increase of 300 per cent from 1973. Freehold mineral taxes increased 3,500 per cent, to $5.2 million. The increases resulted from higher crude oil prices and substantially increased provincial royalty and tax rates. “Spudder” used in beginning a well prior to cable tool rig up. Two more unsuccessful wells were drilled offshore in Hudson Bay by Aquitane Company of Canada.

1975 - The Gas Storage and Allocation Act, which provides for underground storage of natural gas, was introduced. The Oil and Natural Gas Conservation Board issued a permit to Daly Gas Storage Ltd., a subsidiary of Greater Winnipeg Gas Company, to evaluate the feasibility of an underground natural gas storage facility in the West Virden area.

1976 - Three small seismic surveys were conducted by Chevron Standard Limited, Francana Oil and Gas Limited and Shell Canada Resources Limited. This was the first petroleum-related geophysical work in Manitoba since 1969.

1977 - Interest in Manitoba’s oil patch grew with the rise in oil prices and Shell Oil Company’s announcement of a deep oil discovery in North Dakota, 40 kilometres southwest of the ManitobaSaskatchewan border. Freehold oil leasing and geophysical activity increased significantly.

1979 - Manitoba’s first Crown oil lease sale in over seven years generated more than $975,000 in revenue. Crown oil royalties, freehold oil taxes, and lease sale revenue generated approximately $12 million for the province. Ten geophysical programs were licensed.

14

Manitoba Oil & Gas Review 2021

toba, the highest number in 24 years. Most of the activity resulted from the development of the Waskada Field. Manitoba’s annual oil production increased for the first time since 1968 to 582,283 cubic metres, a seven per cent increase over 1981. The value of oil produced rose 57 per cent to over $100 million, due to increased production and higher oil prices. Remaining established crude oil reserves increased six per cent to 8.2 million cubic metres. New seismic operations were conducted offshore in Hudson Bay.

1983 - Two hundred and forty-seven wells were drilled. This was the highest number in 27 years and a 27 per cent increase over 1982. Oil production continued to increase for the second consecutive year, reaching 738,300 cubic metres. The Oil and Natural Gas Conservation Board approved a plan by Omega Hydrocarbons Ltd. to construct a $3.5 million natural gas liquids recovery plant in the Waskada oil field, the first of its kind in Manitoba. The Surface Rights Act was passed by the Legislature on June 21, 1983. A sixmember Surface Rights Board was appointed to arbitrate disputes between the petroleum industry and landowners in exploration and development operations.

1984 - Production increased for the third year in a row, reaching 793,284 cubic metres. Two hundred and forty-six wells were drilled. The October land sale established an all-time record for an average bonus price per hectare of $1,411 for a 128-hectare parcel in the Lulu Lake area. The Waskada Gas Plant began operating in March. The Oil and Natural Gas Conservation Board approved a plan to re-inject dry processed gas into the Waskada Field to aid in an enhanced oil recovery project. Inter City Gas Corporation’s construction of the 90-kilometre Waskada Crude Oil Pipeline was completed in December.

Information courtesy of Manitoba Energy and Mines’ Petroleum Branch and Oil in Manitoba. v

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Line 3 work on tap

this summer in Manitoba With the new pipeline in service, Enbridge is turning its attention to decommissioning the old Line 3

By David Coll, Senior Communications Advisor, Enbridge Inc.

Along a 1,097-kilometre corridor – stretching underground from

nificant construction activities that excavation and removal would

Hardisty, Alberta to the U.S border at Gretna, Manitoba – is a new,

bring,” says Brett Fixsen, Supervisor, Projects with Enbridge. “Leaving

36-inch steel oil pipeline placed into service by its owner/operator

the line in the ground also reduces the risk of soil and slope instabil-

Enbridge in May 2019. Above ground, with the right-of-way for the

ity as well as settlement and compaction issues that could compro-

new pipeline returned to its pre-construction condition (or better),

mise the safety of active pipelines sharing that right-of-way.”

Enbridge is now focusing on decommissioning the old Line 3.

The overall project has been divided into segments and will

A decommissioned pipeline is defined by the Canada Energy

take place in stages, beginning in Manitoba in June, from east of

Regulator (CER) as one that is taken out of service safely and per-

Enbridge’s Cromer Terminal to Gretna. The remaining segments

manently while other existing or new pipelines in the same right-

(Hardisty-to-Kerrobert; Kerrobert-to-Regina; and Regina-to-Cromer

of-way continue to provide service to end users.

are scheduled to begin in the spring of 2022.

Enbridge has approval from the Canada Energy Regulator (formerly the National Energy Board) to decommission Line 3 in place, a standard practice which minimizes the potential effects on communities and the stability issues that surround soil disturbance.

“Leaving Line 3 in place avoids the added disturbance and sig-

16

Manitoba Oil & Gas Review 2021

The work from Cromer to Gretna will require a peak workforce of approximately 35 persons, with crews of seven to 10 persons.

“While the general contractor is yet to be determined in all four segments, Enbridge has only invited Indigenous affiliated businesses to participate in the process,” says Kim Brenneis, Director,

Community & Indigenous Engagement. “Enbridge is proud that

3. Segment the pipeline: Permanent physical barriers are created

Indigenous businesses will play a large role in helping us decom-

inside the pipeline to prevent the pipeline from acting as a con-

mission the old Line 3 pipeline.”

duit. This includes valves and permanent segmentation instal-

Line 3 decommissioning will involve wiping and cleaning, dis-

lations. Valves are closed and permanently disabled, and small

connecting, segmenting, filling the pipeline (at strategic points)

pieces of the pipeline are removed so it can be sealed at select

and ongoing monitoring, even after decommissioning is com-

locations.

4. Strategically fill the pipeline: The line will be filled with an en-

plete.

Here is a look at the five steps involved in decommissioning: 1. Clean the pipeline: A combination of cleaning instruments (often referred to as “pigs”) and cleaning solution is used to wipe and clean the pipeline.

gineered material at railway crossings, which can also provide protection against water conduits.

5. Monitor the pipeline: Cathodic protection will continue to be applied to the decommissioned pipeline. It will be monitored

2. Disconnect the pipeline: The pipeline is physically disconnected

with regular pipeline patrols, pipeline signs indicating exact lo-

and sealed off from active operational facilities like pump sta-

cation, and depth-of-cover surveys, and it will remain on Click

tions to prevent oil from re-entering the system.

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Manitoba Oil & Gas Review 2021

17

Greening of the pipeline grid Solar project now supplies power to the Enbridge Mainline pipeline which runs through southern Manitoba

The southern prairies see greater than 2,400 hours of sunshine annually, compared to between 1,200 and 2,000 hours in the rest of Canada. It may not seem like it at times, but the prairies typically see some sunshine about 320 days every year.

The vast, open spaces of the northern plains continue to support a rich agri-

cultural economy but, increasingly, that abundant sunshine is being harnessed to backstop a burgeoning solar power industry.

In late March, Enbridge opened its first solar self-power project in Canada between Lethbridge and Medicine Hat. Alberta Solar One, as it’s known, now sup-

Let’s keep moving forward.

Together.

Find resources and training at safemanitoba.com

plies a portion of power to the Enbridge Mainline pipeline network, which includes the recently completed Line 3 Replacement pipeline.

The $20-million facility features 36,000 solar panels and has a capacity of 10.5 megawatts, equivalent to meeting the energy needs of about 3,000 homes and offsetting some 12,000 tonnes of carbon annually. By supplying Enbridge’s Mainline power requirements with renewable electricity, the solar farm displaces power generated from carbon emitters like coal-fired power plants.

“These types of projects fit into our larger growth plans to reduce emission intensity by 35 per cent and be net zero by 2050,” says Vern Yu, Executive Vice President and President Liquids Pipelines. “To help get there, we’re using solar self-power to generate electricity for our operations, modernizing our systems to improve efficiency and advancing other technologies.

While the new facility is the first of its kind for Enbridge in Canada, it’s part of a broader program the company is initiating to self-supply a growing portion of its energy needs from renewable resources.”

“This project is a win-win for Enbridge’s power team as we continue to grow our renewable energy portfolio and support Enbridge’s sustainability goals,” adds Matthew Akman, Enbridge’s Senior Vice President of Strategy and Power. “We’re excited to see our first Canadian self-power project come online, and we will continue to invest in opportunities across North America that generate energy to power our operations.”

Including Alberta Solar One, Enbridge is looking at approximately 15 to 20 selfpower projects for its liquids pipelines pump stations and gas pipelines compressor stations. v

18

Manitoba Oil & Gas Review 2021

Message from Mark Scholz, President and CEO of the Canadian Association of Oilwell Drilling Contractors After the year we’ve just had, some may

CAODC members, the fall was from a low

istration in the US will be implementing

argue it would be difficult to be anything

height. We were already at historical ac-

environmental regulations that are more

but positive about the future of Canada’s

tivity lows and had been through layoffs,

comparable to Canadian standards, bring-

energy services sector. And to be fair, “how

bankruptcies, and shutdowns for several

ing operating costs into closer alignment.

could it get any worse?” was a legitimate

years prior. While 2020 did, sadly, mean

And finally, with the approval and distribu-

question to ask if you worked in our in-

the end of the road for some companies

tion of several vaccines, we may be nearing

dustry from 2014 to 2019. Unfortunately,

struggling to hold on, for others, it was yet

the end of many of the pandemic restric-

however, 2020 gave us the answer to that

another year of “more of the same” from an

tions that have had such a dramatic impact

question with such force that I’m not sure

operational perspective.

on demand for our products.

many people will ever ask it again for fear of the consequences!

As rough as 2020 was, thankfully for

Arguably, the two biggest challenges we

Which brings us to 2021, and Ladies

have faced as an industry over the past six

and Gentlemen, I am very pleased to say,

years have been lack of pipeline capacity

I haven’t felt this positive about the pros-

and low commodity prices. In 2020, TMX,

pects for our industry in a long time. We

Line 3, and Coastal GasLink quietly moved

have finally come to a place where the

past regulatory hurdles and nearer to com-

fundamentals support a return to brighter

pletion, and we are now closer than ever to

days, and although outcomes are never

seeing a meaningful increase in takeaway

certain, the excitement in the air is sup-

capacity for our products to both US and

ported by facts and not optimism alone.

overseas markets. We also saw the price

For all we endured in 2020, we can be

of oil increase substantially from historical

grateful it is now behind us. Toward the

lows set earlier in the year, and with a high-

end of the year, and into the spring, we

er price for natural gas, and an increase in

have seen very promising signs of a much

activity in other commodity types such

welcomed and much deserved uptick for

as helium, hydrogen, and geothermal, we

our membership. I couldn’t be happier to

managed to end the year with solid drilling

see activity levels brimming, help wanted

activity numbers. On the service side of the

signs, and talk of growth for the first time

equation, the federal government’s $1.7

in a long time. Congratulations to all our

billion in funding for well reclamation en-

members who have worked so hard to

tered the market and has stabilized activity

keep their businesses alive and their em-

levels for service rig contractors in western

ployees working. I look forward to this year

Canada. Additionally, we have seen indica-

as the beginning of better days ahead for

tions that the newly elected Biden admin-

us all. v Manitoba Oil & Gas Review 2021

19

Regional economic partnership

open for business!

From a strong agricultural and oil industry base to an active commercial business sector, the region is a great place to invest, grow, and do business.

The Dennis County Development Partnership (DCDP) is a collaboration between the Town of Virden, the RM of Wallace-Woodworth, and the RM of Pipestone. Assisting with investment and development, they have created an inventory of commercial properties within the region. The DCDP has great insight for the direction of business and business development in the region.

Dennis County is in one of the most accessible areas of Manitoba for both interprovincial and international road transportation.

A majority of producing oil wells in Manitoba are in Southwest Manitoba in and around Dennis County region. As part of Southwestern Manitoba, Dennis County plays a large role in the industry, and the Virden is known as the Oil Capital of Manitoba. The town of Virden is the field/operations office location of the largest oil & gas employer in Manitoba: Tundra Oil & Gas. Tundra employs approximately 200 people out of their Virden location and works with local suppliers and businesses, building the region as a major oil & gas hub within the province.

The Partnership has explored opportunities to expand the municipalities’ economies with the creation of an Investment Attraction and Economic Development Strategy.

“After completing our strategic plan in the fall of 2017, the DCDP has been executing projects over the past few years that will provide us with a competitive edge for investment attraction and sustainability,” says Tiffany Cameron, Economic Development, RM of Wallace-Woodworth. A labour study has been completed and the DCDP executed a Business Retention & Expansion program.

Part of this strategy included the development of a Regional Investment Website, inspired by one from the Province of Ontario.

This is the 1st regional investment website of its kind in the province of Manitoba! “We are on the forefront of innovation for investment; it is an exciting time to be involved in a project of this calibre,” stated Tanis Chalmers, Manager of Economic Development, RM of Pipestone.

The website will market the regional advantages and opportunities for investment. One of the key elements of the website is the commercial and industrial property data base. This section inventories private and municipal properties and the details of those

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properties. It is not inclusive to land that is currently developed.

The website will also showcase properties that are under development.

“We have a number of properties that are ready to purchase and develop on tomorrow, it is also strategic to illustrate the future of the region, we are growing and our future plans anticipate that,” notes Liza Park, Manager of Economic Development, Town of Virden.

Plans for 2021 include an innovative approach to data collection by consulting with the Rural Development Institute of Brandon University. The project will research existing resources and synthe-

size information into a reference tool to assist with accessing existing investment-readiness information. The DCDP will then have a further understanding of infrastructure capacity within the region increasing their ability to attract development and manage investment inquiries.

The DCDP has been fortunate to receive project funding from both the Province of Manitoba and the Government of Canada.

The DCDP anticipates that the activities will elevate the region as a place to do business and strengthen the regional economy.

The DCDP website is available at investsouthwest.ca or you can email the DCDP at info@investsouthwest.ca. v

From a strong agricultural and oil industry base, to an active commercial business sector, the region is a great place to invest, grow, and do business.

Advantages:

• Direct access to national air, road, and rail transportation networks.

• Quick access to national and regional energy corridors, providing a distinctive lower cost opportunity for corporate investment and growth.

• Access to 3 separate inland ports within 3 hours transport time, east, west, or south, provides for opportunity to regional North American markets on the Canadian Prairies and in the US Mid West.

• Industrial raw water supply, potable water distribution system and advanced wastewater treatment capabilities.

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• Assistance with commercial and business investment and development.

• Inventory of commercial properties within the region.

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Manitoba Oil & Gas Review 2021

21

Oil & gas recovery in 2021 will help the entire country PHOTO COURTESY OF PSAC MEMBER COMPANY TOG SYSTEMS LTD.

For the first time in a long time the macroeconomics are improving for Canada’s oil & gas industry. This is good for the producing provinces, the companies involved, and the legion of workers from one end of the country to the other.

This is of particular benefit to the producing regions from southwest Manitoba to northeast B.C. It’s in the numbers, and they’re all greatly improved. Rising commodity prices, reduced costs, and quick returns to historical production levels have made the macroeconomic outlook for all stakeholders much better, particularly compared to last year.

ARC Energy Research Institute publishes its weekly ARC Energy Charts, an overview of the upstream oil & gas producing sector. It includes trailing and forecast daily production, commodity prices, total revenue, after-tax cash flow (funds available for reinvestment once all costs and obligations are covered), reinvestment (capital), and how much of the available cash flow is going back into the business in Canada.

The following data is extracted from the April 5, 2021 edition.

“The good news is that production volumes and prices have recovered,” says Elizabeth Aquin, PSAC Interim President & CEO. “This is a vast improvement for unemployed workers and underutilized oilfield service and supply companies because at least the producers have cash to spend.

That wasn’t the case in 2020.

“As drilling and well servicing activity picked up in the first quarter of 2021 in alignment with PSAC’s Forecast Update in late January, oilfield service companies were once again seeking skilled and experienced personnel to operate their equipment safely and efficiently. Persuading

22

Manitoba Oil & Gas Review 2021

The WatchTOG Rover portable security trailer – which can act as a stand-alone security device or be integrated into a larger system for providing security at remote work sites.

It has a 36-foot telescoping mast and solar panels which allow for three months of deployment without refueling. It also contains infrared illuminators, LED floodlights, license plate reader, digital signage boards and audio systems, can be monitored and controlled remotely, and can be setup and configured to operate in as little as 15 minutes. workers to return to the sector is challenging without a long-term commitment. But the indications are the recovery appear sustainable.”

For 2021 ARC figures that production will continue at record levels, over 8 million barrels of oil equivalent (boe) per day, 10 per cent higher than last year as production returns to normal after the pandemic shutdown of a year ago.

This affirms Canada’s position as the fifth-largest producing jurisdiction in the world on a boe basis. Conventional oil & natural gas production is steady, while oil sands will reach a new level of nearly 3.2 million b/d.

The important factor is price. For natural gas, ARC estimates gas will average $2.54 per GJ, the highest since 2015 and substantially higher than 2018 when it averaged only $1.45. This is welcome news to western Canada’s battered gas producers.

Oil is expected to average $74.91 per barrel, 62 per cent higher than in 2020.

After-tax cash flow from production – the funds producers have available for reinvestment – is estimated to be $70.5 billion. This is more triple last year’s estimate of only $23.3 billion, the highest figure ARC published going back to 2011.

Before you pop the champagne corks, producers are nervous of the oil price be-

“ Canada has the opportunity to lead the way in the essential fossil fuel component of the global energy transition. The world isn’t going to replace oil and natural gas anytime soon, and Canada should remain committed to being a preferred supplier because of its safety, environmental, and human rights commitment and performance.” cause it’s supported by supply management from the OPEC+ consortium, so they are holding back on investment commitments. The reinvestment ratio is low as producers repair their balance sheets by paying down debt and gain confidence that current oil & gas prices will remain at current levels.

But as the year progresses, and if worldwide inventories decline and prices stay stable, more of this cash flow will find its way back into the field in the form of investment in drilling, production enhancement, maintenance, upgrades, and, most importantly, employment. This will have a positive impact on every oil & gas-producing community in the country.

There are three export pipelines under construction that will give the industry the opportunity to grow again: the Enbridge

R

RMB

Line 3 replacement and Trans Mountain for oil, and Coastal Gas Link for natural gas and LNG. When completed in the next few years, these market access links will provide a permanent foundation for once again growing Canada’s oil & gas production base.

“The other big change in the industry is its determination to continually embrace innovation and sustain Canada’s well-deserved position as a responsible oil & gas producer,” Aquin continues. “Exploration and production (E&P) companies and the essential oilfield services, supply, and manufacturing support sectors are relentlessly exploring new ways of reducing their carbon footprint in every facet of their operations.

“Canada has the opportunity to lead the way in the essential fossil fuel component

of the global energy transition. The world isn’t going to replace oil and natural gas anytime soon, and Canada should remain committed to being a preferred supplier because of its safety, environmental, and human rights commitment and performance.”

But perhaps the most important aspect of the oil & gas rebound is its national economic contribution. As the country recovers from the pandemic lockdown and disruption, resource businesses that can profitably provide life’s essential energy and generate cash flow for reinvestment, wages, taxes, and employment can play a key role in stabilizing Canada’s finances.

PSAC does not foresee a return to boom times. But the foundations are in place for a return to recovery, stability, and growth.

The entire country will benefit. v

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Mental health: The parallel pandemic Economic fluctuations and the impacts of the COVID-19 pandemic have contributed to uncertainty in Canada’s oil & gas industry. It’s no wonder that feelings of isolation, worries about loss of income, and concerns about health — along with public health measures like lockdowns and physical distancing — are having a negative psychological effect on many people.

To function at work, and in every other area of daily life, mental health is as important as physical health. In fact, it is a key factor in being fit for duty, which includes being in a physical and mental state to perform one’s duties. Stress, anxiety, distractedness — these all affect a person’s ability to focus on working safely.

The good news is, there is an abundance of tools and resources to help support employees’ and co-workers’ mental health, including several free webinars hosted by Energy Safety Canada discussed below.

REMOVE THE STIGMA It’s time we all address the stigma of mental illness. It is much more prevalent than many realize. The Canadian Mental Health Association (CMHA) reports that: • In any given year, one in five Canadians will experience a mental health problem or illness.

• Mental illness affects people of all ages, education, income levels and cultures.

• By age 40, about 50 per cent of the population will have or have had a mental illness.

• Almost one half (49 per cent) of those who feel they have suffered from depression or anxiety have never gone to see a doctor about this problem.

Energy Safety Canada recently hosted a webinar, Breaking the Stigma One Save

24

Manitoba Oil & Gas Review 2021

at a Time (https://www.youtube.com/ watch?v=CwGvjYo2Rvw), with mental health advocate and former NHL goalie Corey Hirsch. In his candid and plain-spoken presentation, he shares his personal story and some great advice.

PROMOTE AND SUPPORT MENTAL HEALTH IN THE WORKPLACE Another important action we can take is to normalize discussion about mental health in our places of work. Pat Ferris, who has a master’s degree in clinical social work and a doctoral degree in industrial organizational psychology, has provided mental health, trauma and safety services to the oil and gas Industry for 30 years. In her webinar, Mental Health Resilience During COVID-19 and Beyond (https://www. youtube.com/watch?v=Odu6D6rJM_s), she explores how to create resilience and connection in the workplace for essential workers and those working remotely who may feel isolated.

Other webinars focusing on mental health in the workplace that may be helpful include: • Supporting Psychological Health and Safety: COVID-19 Workplace Reboot • Creating Buy-In for a Mental Health Policy • Building Mental Health into Emergency Management and Business Continuity Programs

Can We Talk? A Mental Health Discussion, he shares how to empower employees to start conversations and support those we think might be struggling.

And in another of Pat Ferris’s presentations, COVID-19: Resetting Mental Health in the Workplace, she discusses topics such as regulating your emotions, how to lead with empathy, and tools and tips to support others’ and your own mental health.

COVID-19 has tested all of us in one way or another, and some are struggling more than others. But everyone can have a role in promoting positive mental health and wellbeing simply by demonstrating caring for others, understanding the signs, and taking action.

WHAT CAN YOU DO TODAY? Need help understanding the signs?

The CMHA has helpful self-assessment quizzes: • Mental Health Meter • What’s Your Stress Index?

• Work-Life Balance Quiz And if you are struggling, don’t wait.

Help is available: • Crisis and non-crisis resources in Manitoba - https://www.gov.mb.ca/health/mh/ crisis.html • Information and resources from the Government of Canada - https://www.cana-

EDUCATE YOURSELF AND TAKE ACTION “Just as there are things you can do to take care of your physical health, there are also things you can do to take care of your mental health,” says Mitch Hermansen, Director of Development with Movember, the world’s largest men’s health charity.

In his webinar for Energy Safety Canada,

da.ca/en/public-health/topics/mentalhealth-wellness.html RESOURCES • https://www.energysafetycanada.com/ EnergySafetyCanada/media/ESC/ Resources/Fit-for-Duty.pdf • https://cmha.ca/document-category/ mental-health v

How to develop EOR technologies more efficiently with a stage-gated approach

By Petro Nakutnyy, Director of Operations, EOR Processes, Saskatchewan Research Council

It’s okay to fail in technology development. But it’s important to do it quickly and move on.

When industry is developing new technologies to apply in the field, there are a lot of factors that go into the process—from concept to commercialization. At different points along the way, specialized expertise can be useful to keep the process on track and reduce development costs, as well as make the most efficient use of time. This helps to de-risk the technology development process.

The Saskatchewan Research Council (SRC) uses a stage-gated approach to help small-to-medium enterprises develop their technologies and evaluate technical, market and commercial factors. This helps our clients save time and accelerate adoption. We operate across the whole spectrum of Technology Readiness Levels, from Concept-Feasibility to Field Commercial Pilots.

Stage-gating technology development creates a roadmap for evaluating the field and the proposed technology at key points during the process. SRC has developed fast-to-fail tools that allow us to quickly test new ideas and identify any showstoppers. The review will either confirm the technology is ready to advance to the next stage or identify if further work is required, cycling the technology back through the previous stage.

This process prioritizes early evaluation of factors that are most likely to cause a technology to fail. If a technology is not likely to succeed, it can be cancelled at the lowest possible cost in time and resources.

First, a comprehensive roadmap is developed that can realistically take a new technology or concept from the drawing table all the way to the field. It’s a six-step approach that SRC has applied to several new technology developments and start-ups. These six steps are, of course, tailored to the experiment goals.

The approach starts with identifying the mechanisms and possible failure factors so that they can be addressed as soon as possible. If it makes sense to proceed, the next step is designing and performing small- and large-scale experiments. It’s very important to choose the appropriate experimental design, including factors such as model size, aspect ratio, injection, and production wells.

Once the experimental set-up is chosen and prepared, several of the experiments are run, and what is often found is that the initial idea needs significant modification for the technology to succeed.

The next step is numerical simulation, and because it’s already been tested at a larger scale, it’s now a lot easier to predict field performance. After this, the field pilot is planned, which often involves selecting a location and providing monitoring to help determine how successful the technology is and/or what could be changed to make it even better.

An important part of this stage-gated approach is the use of custom, large-scale physical models in the experiments. These 3D models are designed and built by SRC’s experts and can be tailored to the process and specific application. These models provide the capacity to scale up to field conditions, which also reduces experimental uncertainty and the risk of unexpected issues at site.

Of course, none of this is valuable unless it works. This approach has allowed SRC to take many technologies from basically an idea to the field in under five years—much faster than the industry average.

So, keep going—the world needs new technologies, tools, and techniques to help accelerate innovation in the field. And SRC’s stage-gated approach will continue to be there to support industry in these important endeavors.

SRC’s Enhanced Oil Recovery team has provided science-based solutions to industry since 1986. View the complete article on SRC’s blog at https://www.src.sk.ca/blog. v Manitoba Oil & Gas Review 2021

25

A least-cost curve for actions to reduce CO2 emissions or How do we solve climate change at the cheapest price possible?

Provided by the Canadian Energy Research Institute A substantial portion of CERI’s research focus has been on the costs related to carbon reduction in the energy sector. Our studies on electrification and methane emissions reduction have provided some insight. For example, moving to the electrification of most fossil fuel energy services indicates a cost of approximately $125/ tonne. Reducing methane emissions can, in some cases, result in costs of up to $50/tonne. In comparison, emerging CCS technologies range from $50/tonne to $200/tonne.

These are greenhouse gas (GHG) emissions reduction costs that we see in Canada. In other parts of the world, these costs can vary significantly. And in Canada, these emissions reduction costs do not include options such as enhancements to energy efficiency in provinces with higher fossil fuel use in electricity generation, or for that matter, the costs associated with changing forestry practices, waste management or fuel substitution in industries such as cement manufacturing, or low carbon fuels or hydrogen for the transportation sector. Forestry, agricultural, and waste management all create GHG emissions that should be considered for reduction if those costs are lower than in the energy sector.

What we have seen is a series of policy and regulatory decisions isolated to various sectors, particularly for our energy systems, in the upstream and downstream sub-sectors—and isolated from emissions reduction options in other sectors, and isolated from options in other countries. An example of an isolated policy is the development of clean fuel standards for liquid fuels used in transportation. Suppose the overall goal of Canada’s GHG reduction strategy is to move to net-zero emissions. Should we be investing in improving the emissions performance of internal combustion engine vehicles or focus our efforts on moving toward electric vehicles? The key observation is that we haven’t even looked at this question about which approach is cheaper.

Furthermore, we have seen prognostications from various groups about the overall cost of getting to net-zero by 2050. The estimates range widely, but most indicate a significant total cost to achieve our climate change management goals.

To assist decision-makers in business and government, maybe we should consider a least-cost curve of all available GHG emissions reduction options.

This concept is not new. It’s based on debate and discussion in the energy sector regarding integrated Resource Planning. The concept is straightforward and has been employed in Canada under regulatory regimes for at least 30 years. What occurs is a reasonably exhaustive list of options to meet a particular goal. In the

26

Manitoba Oil & Gas Review 2021

electricity sector, this would range from new grid reinforcements, expanded traditional generation to investments in renewable, distributed generation, energy efficiency and demand management. Those are the option categories. The goal is providing electricity services at the lowest overall cost, which I assume is not a controversial concept.

While CERI has addressed some of the options, such as calculating electrification costs under different scenarios, fuel switching for passenger and freight transportation, decarbonizing our liquid fuels, and reducing methane emissions, these options do not cover the broad set of categories of solutions that could be employed.

Is it cheaper to electrify with non-emitting generation or to capture the carbon? Are both needed to meet our overall goals?

Should we consider both electric vehicles and fuel economy improvements in internal combustion engine cars? Is it cheaper to plant trees to reduce carbon or change some agricultural practices or adjust our waste management systems? All contribute to addressing the problem of added CO2 in the atmosphere, but no clear set of cost curves bring all the options together and identify the cheapest options.

When there’s an increasing concern for the environment as well as the economic vulnerability of citizens and governments, should we put some foundational research in place to guide us thoughtfully choosing the most economically viable and efficient GHG reduction options?

With this approach, we can compare the least-cost options in Canada with the least-cost options in other countries. That means the integrated resource planning context should be considered for a broad global set of actions, which can be facilitated by a potential framework under Article 6 of the Paris Agreement.

CERI will continue to add to the body of knowledge about the various options available for energy supply and demand in oil, gas, electricity, and renewable energy markets, focusing on economic impacts and GHG emissions reduction. However, this group of options (energy efficiency, fuel decarbonization, fuel switching and carbon capture) needs to be joined by options from other nonenergy sectors inside Canada and energy and non-energy carbon reduction options in other countries. At that point, when we make decisions, even if they are to ignore some cheaper options, we will all understand the economic impacts of our decisions. v

Canada says government fund helping to cut methane emissions A Canadian government fund established to help the energy sector reduce methane emissions will cut the country’s overall carbon dioxide emissions by about half a percentage point in its first year, Natural Resources Minister Seamus O’Regan said recently.

The oil & gas sector is Canada’s largest industrial emitter of methane, a potent climate-warming greenhouse gas that accounts for 13 per cent, or 91 megatons, of the country’s overall emissions.

In a news release, O’Regan said the C$750 million ($598.61 million) Emissions Reduction Fund would help the industry cut 3.1 megatons of carbon dioxide emissions in the 12 months since it was launched last October. That is the equivalent of taking 674,000 cars off the road.

Canada hopes the fund will spur the oil & gas sector to adopt greener technologies while also supporting energy jobs. The government has signed funding agreements totalling C$71.5 million with 15 companies so far, including privately-owned Tundra Oil & Gas Ltd. in Manitoba.

“We have hundreds of thousands of workers who know how to build energy infrastructure,” O’Regan said. “These are the same people who will lower emissions, the same people who will build renewables, the same people who will meet our targets.”

Canada is the world’s fourth-largest oil producer and one of the biggest greenhouse gas emitters on a per capita basis.

Canadian Prime Minister Justin Trudeau’s Liberal government is aiming to cut carbon emissions from 730 megatons per year to 503 megatons by 2030 and has imposed measures, including a carbon tax that will steadily ramp up to C$170 a ton.

Canada introduced national methane regulations in 2018, aimed at cutting emissions from the oil & gas sector by 40 per cent to 45 per cent, and said in December it will establish new targets for 2030 and 2035. Data released last year, however, showed methane emissions from Canada’s oil sector were higher than previously thought.

U.S. President Joe Biden’s administration also is planning to introduce stricter curbs on methane from the oil and gas industry. v

U.S. continues to be major supplier of oil to Canada while imports dropped in 2020 The United States supplied nearly four out of every five barrels of oil imported into Canada in 2020, while crude imports fell 20 per cent due to lower demand during the COVID-19 pandemic, according to the latest analysis from the Canada Energy Regulator (CER).

Imports of crude oil decreased to 555,000 barrels per day (b/d), down from 693,000 b/d in 2019 with 77 per cent of total crude imports coming from the U.S. in 2020, up from 72 per cent in 2019. Of the remaining crude imports, 13 per cent came from Saudi Arabia, four per cent from Nigeria, three per cent from Norway, and the remainder from several other countries.

“The source for Canada’s crude oil imports has changed dramatically over the past decade,” says Darren Christie, Chief Economist with CER. “The United States has moved from a bit player in 2010 to a major supplier today, with the majority of oil imported into Canada coming from our southern neighbour.”

While Canada exports nearly 6.5 times more oil than it imports, it still relies on oil imports to feed refineries in the Atlantic Provinces, Quebec, and Ontario. Less than one-third of Canadian crude oil is processed by Canadian refineries for a variety of reasons, such as lack of pipeline access to domestic supplies, specific product requirements of refineries, or because it costs less to import.

Most of the oil Canada imports is transported by marine tanker and pipeline, with small volumes being imported by rail.

The CER produces neutral and fact-based energy analysis to inform the energy conversation in Canada. Market Snapshots are part of a portfolio of publications on energy supply, demand, and infrastructure that the CER publishes regularly as part of its ongoing market monitoring. v

Manitoba Oil & Gas Review 2021

27

Virden Meter filled need for instrumentation contractor This article originally appeared as the “Monthly Oilfield Report Feature” in the Virden Empire-Advance, March 24, 2021

By Lindsay White Virden Meter, located at 124 Anson Street, provides technical sales and service which support the oil & gas sector, a major economic driver in Southwestern Manitoba.

The company joined the local business community at the height of petroleum industry activity in 2012. It started out as a branch of Estevan Meter and became a separate entity the following year, owned and operated by Mark Kessler of Wapella, Saskatchewan.

[With 2014 came] a move next door to a new, more expansive building which

28

Manitoba Oil & Gas Review 2021

includes office space, a warehouse housing over $1 million worth of inventory, a service shop, and shipping/receiving area.

Over time, the staff has grown from two to the current seven, which includes instrumentation technicians who work in the field as well as in the company’s wellequipped shop.

“We’ve had good support from the local oilfield companies. There was definitely a

a total crapshoot. Stuff that used to be a couple of days delivery, (now) it’s a couple of weeks. It’s really a struggle to maintain the supply chain.”

The pandemic has also put the brakes on any expansion plans, at least for now.

“It would be nice, but we have to get over the world ending for the last two years to see what happens,” he says.

Locally, Virden Meter is a sponsor of the

Virden Oil Capitals junior hockey team and contribute to events like the Demolition Derby, which runs in conjunction with the Virden Indoor Rodeo & Wild West Daze, and the annual Oilmen’s Golf Tournament.

“We’re a community-based business, and we’re here to support the community.” v

need for an instrumentation contractor in this area,” says Kessler.

Virden Meter sells new products like tank gauging and offers timely service, calibration, and maintenance for such items as controls, relief valves, and SCADA systems – vital to the continuity of oil patch operations.

“It’s quite a variety. We’re a certified relief valve service shop. There’s two in Manitoba.”

During its time in Virden, the company has carved out a niche and has managed to withstand the “boom and bust” nature of the petroleum industry, which often ripples throughout the entire community.

Aon is proud to support Manitoba’s oil and gas industry.

“It has definitely raised my stress level, but we’ve always survived,” Kessler remarks.

Kessler’s business philosophy emphasizes after-sale service. “We service what we sell. If you buy something from us and it fails, we have the parts and the expertise to fix it. We’re not just a supply store.

We supply and service.”

Since the onslaught of COVID-19, Kessler has seen first-hand how it has impacted business and the ability to service customers on a day-to-day basis.

“It’s affected the demand for our commodity. In 2016, when the oil collapsed, you could still go around and find customers unrelated to the oil industry. But with COVID-19, you really can’t even go

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Manitoba Oil & Gas Review 2021

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